Tuesday, May 24, 2011

Metals doing well despite recent dollar strength



USD
HUI
 Metals especially Gold has been very strong against the EUR and has done well despite the USD strength. Silver is up over 2% this morning and gold is up as well but to a lesser degree. We know about the recent news out of eurzone (PIIGs) so I understand metals strength against the EUR but I don't get why the metals relative strength against the USD. Yes, I know all of our debt issues, and inflation and government spending and money printing and all that, but then why is the dollar going up everyday.

Is QE really going to end and then where will the money come from to run the government. Will they start seizing 401k's to fund the deficits or government worker pension funds, will they nationalize businesses.

So what is the plan for us? I mean really what the heck is the big secret? Okay, so you stop QE now what? There is a week left and no one knows what the plan is, where is the money going to come from. Ask yourself, why are people bidding up the dollar or are they confusing the   end of the eurozone leading to weakness in the euro and since the eur/usd  are paired the dollar strengthens by default and not due to fundamental reasons.

Silver
 Unless the FED wants to start a global depression, which they may just do just to screw with the Chinese (Indians) or preserve the Federal reserve notes (the dollars). I mean Obama was out in Mumbai not to long ago admitting we are losing the economic battle against China and India and by now they know they can't print their way out of this mess. They may just say F-It and take everyone down.

They should have done that in 08 and then started over. They only people who benefited from all the bailouts and money printing were the
the banksters and auto makers etc.
CCI

    In conclusion, I don't think anyone knows whats going on.
    If there was a viable plan we'd have it already.



Gold

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